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Thomson Reuters Corporation : VENTURE-BACKED EXITS ENJOYED HIGHER AVERAGE VALUES ON LOWER TOTAL VOLUMES IN 2012



  Thomson Reuters Corporation : VENTURE-BACKED EXITS ENJOYED HIGHER AVERAGE
                    VALUES ON LOWER TOTAL VOLUMES IN 2012

    Both IPO and Acquisition Quality Improved as Market Uncertainty Slowed
                 Transactions in the Second Half of the Year

New York, New York, January 2, 2013 - Venture-backed initial public offering
(IPO) activity raised $1.4 billion from eight offerings during the fourth
quarter of 2012, a slight decline in volume from the third quarter of this
year but a 23 percent increase in dollars raised compared to the previous
quarter, according to the Exit Poll report by Thomson Reuters and the National
Venture Capital Association (NVCA).  For full year 2012, venture-backed
initial public offerings raised $21.5 billion from 49 listings, and driven by
the Facebook offering, represented the strongest annual period for IPOs, by
dollar value, since 2000.  For the fourth quarter of 2012, 95 venture-backed
M&A deals were reported, 26 of which had an aggregate deal value of $3.5
billion, a 57 percent decrease from the third quarter of 2012.  Acquisitions
of venture-backed companies totaled $21.5 billion for full year 2012, an 11
percent decline from full year 2011.

"While the venture capital and startup communities were optimistic about a
more robust IPO market in 2012, political, economic and market conditions
served as the backdrop for a series of fits and starts which hurt volume
growth throughout the year for public offerings and acquisitions alike," said
Mark Heesen, president of the NVCA. "Yet, while increased volumes remained
elusive, the overall quality of exits this year was quite strong, and
certainly sends a message that the market is receptive and open for business
in 2013."

                                                                       Average
                      M&A Deals    *Total   *Average            Total    IPO
               Total     with    Disclosed  M&A Deal           Offer    Offer
                M&A   Disclosed  M&A Value   Size    **Number  Amount  Amount
Quarter/Year   Deals    Values      ($M)      ($M)   of IPO's   ($M)    ($M)
2007            488      200       30,745.5    153.7    92    12,365.5   134.4
2008-1          129       43        5,201.6    121.0    6        577.5    96.3
2008-2          102       28        3,145.2    112.3    0            0     0.0
2008-3          109       40        5,248.8    131.2    1        187.5   187.5
2008-4          76        23        2,641.3    114.8    0            0     0.0
2008            416      134       16,236.9    121.2    7        765.0   109.3
2009-1          80        19          830.5     43.7    0            0     0.0
2009-2          77        14        1,982.4    141.6    7        997.6   142.5
2009-3          96        30        2,224.3     74.1    2        522.5   261.3
2009-4          98        45        7,327.7    162.8    4        459.7   114.9
2009            351      108       12,364.9    114.5    13     1,979.8   152.3
2010-1          146       36        4,945.1    137.4    8        921.9   115.2
2010-2          108       30        2,681.4     89.4    18     1,548.4    86.0
2010-3          133       36        4,140.9    115.0    17     1,996.0   117.4
2010-4          134       47        5,932.8    126.2    25     3,142.8   125.7
2010            521      149       17,700.3    118.8    68     7,609.1   111.9
2011-1          135       51        5,966.8    117.0    14     1,526.9   109.1
2011-2          92        37        6,202.3    167.6    21     5,883.5   280.2
2011-3          139       43        6,934.5    161.3    5        475.9    95.2
2011-4          122       38        4,989.6    131.3    11     2,803.2   254.8
2011            488      169       24,093.2    142.6    51    10,689.5   209.6
2012-1          112       28        3,671.0    131.1    19     1,682.8    88.6
2012-2          118       31        6,180.2    199.4    12    17,219.1  1434.9
2012-3          110       35        8,088.8    231.1    10     1,140.7   114.1
2012-4          95        26        3,523.2    135.5    8      1,408.4   176.1
2012            435      120       21,463.2    178.9    49    21,451.2   437.8
Source: Thomson Reuters & National Venture Capital
Association
*Only accounts for deals with disclosed
values
**Includes all companies with at least one U.S. VC investor that trade on U.S.
exchanges, regardless of domicile.

IPO Activity Overview

There were eight venture-backed IPOs valued at $1.4 billion in the fourth
quarter of 2012.  By number of deals, quarterly volume fell 20 percent from
the third quarter of this year but increased 23 percent compared to the value
registered during the third quarter of 2012.

Five of the eight IPOs of the quarter were IT-related IPOs representing 63
percent of the total issues for in the quarter. By location, seven of the
quarter's eight IPOs were by U.S.-based companies with China-based YY, Inc.,
an operator of an online game community, rounding out the quarter's listings.

In the largest IPO of the quarter, Workday, Inc. (WDAY), a Pleasanton,
California-based developer of human resource enterprise solutions, raised $733
million and began trading on NASDAQ on October 11^th.^ 

                                                       Q4 2012
                                            *Number of            Total
                                       Venture-Backed IPO's   Venture-Backed
                      Industry             in the U.S.      Offering Size ($M)
              Computer Software and
              Services                          1                        732.6
              Internet Specific                 2                        235.5
              Communications and Media          1                        126.0
              Semiconductors/Other
 Information  Elect.                            1                         41.4
 Technology                                     5                      1,135.4
              Biotechnology                     2                        167.2
Life Sciences                                   2                        167.2
              Industrial/Energy                 1                        105.8
                                                1                        105.8
                                 TOTAL          8                      1,408.4

Source: Thomson Reuters & National Venture Capital Association
*Includes all companies with at least one U.S. VC investor that trade on U.S.
exchanges, regardless of domicile

For the fourth quarter of 2012, five companies listed on the NASDAQ stock
exchange and three companies listed on the New York Stock Exchange.   During
full year 2012, 30 companies listed on the NASDAQ stock exchange, while 18
listed on the New York Stock Exchange and one listed Over-the-counter.

Seven of the eight companies brought to market this quarter are currently
trading above their offering price.  Of the 49 offerings for the year, 30 are
trading above their offering price.  There are 27 venture-backed companies
currently filed publicly for IPO with the SEC. This figure does not include
confidential registrations filed under the JOBS Act.

Mergers and Acquisitions Overview

As of December 31^st, 95 venture-backed M&A deals were reported for the fourth
quarter of 2012, 26 of which had an aggregate deal value of $3.5 billion.  The
average disclosed deal value was $135.5 million, a three percent increase from
the fourth quarter of 2011.

The information technology sector led the venture-backed M&A landscape with 65
of the 95 deals of the quarter and had a disclosed total dollar value of $1.6
billion. Within this sector, Computer Software and Services and Internet
Specific deals accounted for the bulk of the targets with 33 and 23
transactions, respectively, across these sector subsets.  

                                                Q4 2012
                                                                     Total
                                     Number of      Number of      Disclosed
                                      Venture-   Venture- Backed    Venture-
                                     Backed M&A M&A  deals with a Backed  Deal
                    Industry           deals     disclosed value   Value ($M)
            Computer Software and
            Services                     33             4                199.3
            Internet Specific            23             4                101.7
            Communications and Media     5              1              1,200.0
            Computer Hardware            2              0                  0.0
            Semiconductors/Other
Information Elect.                       2              2                110.5
Technology                               65            11              1,611.5
            Medical/Health               16            11              1,604.5
   Life     Biotechnology                2              1                  1.5
 Sciences                                18            12              1,605.9
            Other Products               4              1                158.0
            Consumer Related             1              0                  0.0
 Non-High   Industrial/Energy            7              2                147.9
Technology                               12             3                305.9
                               TOTAL     95            26              3,523.2

Source: Thomson Reuters & National Venture Capital Association

The largest venture-backed M&A transaction completed during the fourth quarter
of 2012 was Cisco Systems $1.2 billion purchase of Meraki, Inc, a San
Francisco California-based developer of solutions for the deployment of
wireless networks.

Deals bringing in the top returns, those with disclosed values greater than
four times the venture investment, accounted for 58 percent of the total
disclosed transactions during fourth quarter of 2012, on par with the third
quarter of this year. Venture-backed M&A deals returning less than the amount
invested accounted for 21 percent of the quarterly total.

Analysis of Transaction
Values versus Amount Invested
Relationship between
transaction  value and
investment                    Q1 12 M&A**  Q2 12 M&A** Q3 12 M&A** Q4 12 M&A**
Deals where transaction value
is less than total venture
investment                         7            3           8           5
Deals where transaction value
is 1-4x total venture
investment                         7           12           7           5
Deals where transaction value
is 4x-10x total venture
investment                         11           6          10          10
Deals where transaction value
is greater than 10x venture
investment                         3           10           7           4
Total Disclosed Deals              28          31          32          24
Source: Thomson Reuters &
National Venture Capital
Association
** Disclosed deals that do not have a
disclosed total investment amount are not
included

About Thomson Reuters

Thomson Reuters is the world's leading source of intelligent information for
businesses and professionals. We combine industry expertise with innovative
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Toronto and New York Stock Exchanges. For more information, go to
http://thomsonreuters.com.

About National Venture Capital Association

Venture capitalists are committed to funding America's most innovative
entrepreneurs, working closely with them to transform breakthrough ideas into
emerging growth companies that drive U.S. job creation and economic growth.
According to a 2011 Global Insight study, venture-backed companies accounted
for 12 million jobs and $3.1 trillion in revenue in the United States in 2010.
As the voice of the U.S. venture capital community, the National Venture
Capital Association (NVCA) empowers its members and the entrepreneurs they
fund by advocating for policies that encourage innovation and reward long-term
investment. As the venture community's preeminent trade association, NVCA
serves as the definitive resource for venture capital data and unites its
nearly 400 members through a full range of professional services. For more
information about the NVCA, please visit www.nvca.org.

CONTACTS
Emily Mendell
NVCA
1.610.565.3904
emendell@nvca.org

Lauren Herman
Thomson Reuters
1.646.223.5985
lauren.herman@thomsonreuters.com

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Source: Thomson Reuters Corporation via Thomson Reuters ONE
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